Canal+ Charts New Course for MultiChoice with Africa-First Strategy
In a significant strategic pivot, Canal+ is implementing a comprehensive overhaul of its MultiChoice subsidiary, shifting from a head office-centric model to an aggressive, ground-level expansion across Africa. The move, described as a “back-to-basics” reset, aims to reignite stagnant sales, double down on local content investment, and navigate a complex regulatory landscape, all while restructuring its workforce.
A Field Force Push to Reboot Sales
At the core of the strategy is a direct assault on MultiChoice’s declining sales performance. David Mignot, CEO of Canal+ Africa, which encompasses the MultiChoice Group, acknowledged the former subsidiary’s historical strength. “For years, it has been a source of ideas for Canal+ in Africa… it was very powerful, and then it has been declining quite fast. This we have to re-accelerate,” Mignot stated.
The solution is a massive redeployment of resources. Canal+ plans to deploy over 1,000 field staff—including sales agents and installers—across its operating territories in Africa. This represents a deliberate shift away from centralized head office functions toward on-the-ground distribution and customer acquisition. To fund this push, the company has earmarked €100 million (approximately R1.95 billion) specifically for the MultiChoice turnaround.
The Showmax Shutdown and Local Content Commitment
The reset includes the controversial closure of Showmax, the loss-making streaming joint venture with Comcast. Canal+ characterized Showmax as “bleeding financially” and unsustainable. Its content library and operations are being absorbed into the DStv Stream platform.
This decision has sparked considerable anxiety within South Africa’s creative sector. Adrian Galley, Vice-Chair of the South African Guild of Actors (SAGA), called the shutdown a “significant blow.” He noted that Showmax was not just a platform but a major commissioner of local content for 11 years, providing sustained employment and holding a 17% share of the South African streaming market. Its loss removes a critical distribution channel for local stories, particularly at a time when other global streamers like Amazon have scaled back commissioning in Sub-Saharan Africa.
Mignot, however, firmly rejected the notion that local content investment is being reduced. “In every market we are in, we’re the No. 1 partner in local content production. It’s our DNA,” he asserted. He explained that the savings from shutting down Showmax and renegotiating with international vendors are being redirected. “We’re making savings on international vendors… Our global expense on local supply, both on distribution, marketing and local content, is not decreasing at all. It will be a strategic mistake to do that.”
Workforce Rebalancing and Ecosystem Concerns
The strategic shift necessitates a restructuring of Canal+’s own workforce. The company has introduced voluntary severance packages (VSPs) to “rebalance” its staff, reducing central, head-office roles while expanding its field operations. Mignot framed this as a necessary repositioning: “We have too many resources today at the centre of the organisation and not enough in the field.”
This process, however, has triggered broader industry fears. Reports indicate some service providers have faced payment delays and uncertainty about future contracts. While Mignot confirmed negotiations with providers are underway, the focus is on cost savings from international vendors to protect local supply chains. Industry bodies warn that such cost pressures could ripple through the wider production and distribution ecosystem, which is already strained by issues like a frozen film incentive scheme.
Regulatory Scrutiny and the Path Forward
Canal+’s activities are under a microscope. South Africa’s Competition Commission has recently stated it has “prioritised this matter for active monitoring” following the rapid changes post-acquisition. This oversight follows parliamentary questions about the merger’s conditions, particularly regarding local ownership and local content commitments.
SAGA is calling for direct engagement between Canal+/MultiChoice and industry representatives to clarify future content investment plans. The guild also urges continued government and parliamentary oversight to safeguard jobs and transformation goals in the digital economy. Furthermore, they advocate for the development of “alternative funding and distribution models to fill the gap left by Showmax’s commissioning.”
Balancing Act: Growth, Content, and Compliance
Canal+’s plan is a high-stakes balancing act. It seeks to reignite a once-powerful sales engine through boots-on-the-ground expansion, fund this with a R1.95 billion investment, and protect its stated strategic asset—local content—while shutting down a major local platform. The success of this “back-to-basics” strategy will depend not only on effective field deployment but also on its ability to maintain trust with local producers, distributors, and regulators amidst a painful but deliberate restructuring.
